Posted on Friday, March 18, 2011
South Florida home values fell 14.5 percent, year-over-year, in January, to a Zillow Home Value Index of $138,600, according to data from the Seattle-based online real estate company.
By comparison, home values nationwide fell 7.3 percent, to an index value of $172,182.
The index measures the value of all homes, not just those that sold during a particular period.
Zillow found that 46.3 percent of all South Florida homes sold in January sold for a loss, down from 49.2 percent during the previous January.
South Florida home values have fallen 54.8 percent since their peak in June 2006. Nationwide, home values have fallen 28.2 percent since the peak.
Nearly 43 percent of all single-family homes in South Florida with a mortgage were underwater in the fourth quarter. Nationwide, 27 percent of homeowners owed more than what their home is worth.
“We continue to believe that these high depreciation rates are death throes of the 55-month-long housing recession visited upon us at this time because of the full expiration of the federal home buyer tax credits,” said Stan Humphries, Zillow chief economist, in a blog post about the latest data. “Further, we believe we’ll start to see some stabilization and then reduction in the depreciation rates in the spring numbers ahead of an eventual bottom nationally later this year.”
But, Humphries said, the biggest risk to a housing recovery remains high foreclosure rates that outpace demand and drive down prices.
South Florida Business Journal